AU Optronics (AUO) is currently running at full capacity on its lines ranging from 3.5G-8.5G. The company is seeing increased demand for products that have larger-size panels, bezel-free features and possess higher resolution such as Ultra HD, according to company president Paul Peng.
AUO has recently received short lead-time orders for notebook panels despite the fact that the first quarter is the low season, Peng said, adding notebook panel inventories in the market are at low levels currently, as a result of notebook vendors' cautious approach to placing orders furing the second half of 2013.
He said AUO's notebook panel shipments may see only a slight drop in 2014, with a chance of staying flat should notebook replacement demand emerges.
Notebook panel supply has been tight as other panel makers have switched production capacity away from the notebook segment to tablets and smartphones, Peng remarked.
The president went on to say that AUO's vehicle revenue proportion is expected to reach more than 5% this year, compared to less than 5% last year. He said the company has entered the supply chains of three major Japan-based vehicle companies.
Additionally, AUO has nearly reached 90% yields for its LTPS TFT LCD technology, said Peng. When asked about the recent LTPS TFT LCD developments by China- and Japan-based makers, Peng said that he is not convinced there will be an oversupply of the technology in the market due to the amount of efforts needed in producing sufficient amounts, as there are high technology thresholds to overcome.
Peng also said that China panel makers are expected to increase their panel surface area production capacity by 5-6% in 2014 while demand on the other hand is expected to rise 8-10%.
AUO currently has 3.5G and 4.5G LTPS TFT LCD fabs, with production on the 3.5G line reaching about 27,000 substrates a month and 45,000 substrates on the 4.5G line.
Article translated by Alex Wolfgram
